HPCL’s Eviction and Mesne Profit Dispute Upheld by High Court . Lease Expiry and Valid Termination Confirmed; Civil Revision Applications Dismissed, Mesne Profits Set at Rs. 93,227 Per Month


Summary of Judgement

These Civil Revision Applications are filed by Hindustan Petroleum Corporation Limited (HPCL), challenging the eviction order and mesne profit determination by the Trial Court, which were confirmed by the Appellate Bench of the Court of Small Causes, Mumbai. The case revolves around a lease dispute over property leased in 1961, with renewal options that HPCL claims to have exercised. The Plaintiffs argue that the lease expired in 2001 and sought eviction and mesne profits. The Trial Court ruled in favor of the Plaintiffs, ordering eviction and setting mesne profits at Rs. 93,227 per month. The Appellate Court upheld these decisions. HPCL's subsequent Civil Revision Applications were also dismissed by the High Court, affirming the eviction and mesne profit orders.

Background

  1. Introduction to the Case: HPCL challenges Trial Court findings on eviction and mesne profits confirmed by Appellate Bench.
  2. Parties Involved: Plaintiffs are landlords, Defendants are HPCL.
  3. Lease Agreement: Lease dated July 24, 1961, for 20 years with renewal options.

Lease Termination and Eviction Suit

  1. Lease Expiry and Legal Notice: Lease expired April 15, 2001, with termination notice issued on April 18, 2001.
  2. Eviction Suit Filing: Plaintiffs filed an eviction suit in July 2001.

Trial Court Proceedings

  1. Plaintiffs' Case: Lease expired, renewal options exhausted, and sought eviction and mesne profits.
  2. Defendants' Defense: Denied submissions, argued for lease renewal under specific statutes.
  3. Trial Court Judgment: Directed Defendants to vacate and ordered enquiry for mesne profits.

Appellate Proceedings

  1. Defendants' Appeal: Appeal No. 167 of 2004 filed and dismissed by Appellate Bench.
  2. Mesne Profit Application: Plaintiffs filed for mesne profits, initially seeking Rs. 1,60,000 per month.
  3. Trial Court's Mesne Profit Decision: Set mesne profits at Rs. 93,227 per month with 6% interest.

Further Appeals and High Court Involvement

  1. Further Appeals by Defendants: Appeal No. 313 of 2007 dismissed by Appellate Bench.
  2. Civil Revision Applications: Defendants filed Civil Revision Applications No. 406 of 2011 and No. 875 of 2011.
  3. High Court Admission and Stay Orders: High Court admitted the applications, stayed execution of judgments.

Submissions of Counsel

  1. Defendants' Submissions: Argued for lease renewal, invalid termination notice, and questioned mesne profit determination.
  2. Plaintiffs' Submissions: Argued lease expiration, valid termination, and justified mesne profits.

Analysis and Conclusion

  1. Review of Evidence: Court reviewed records, confirming lease expiration and proper termination notice.
  2. Fairness Doctrine: Emphasized fairness and reasonableness in State actions.
  3. Judgment: High Court dismissed both Civil Revision Applications, confirming eviction and mesne profit orders.

Mesne Profit Determination

  1. Plaintiffs' Evidence: Valuation report and location considerations.
  2. Trial and Appellate Court Decisions: Mesne profits set and confirmed at Rs. 93,227 per month.
  3. High Court Conclusion: No perversity in lower courts' findings, upheld mesne profit determination.

Execution Stay and Future Actions

  1. Stay of Execution: High Court stayed execution for 8 weeks, allowing Defendants to apply for additional time if not challenging the judgment.

 

Case Title: M/S. HINDUSTAN PETROLEUM CORPORATION LTD. VERSUS. MRS. PIROZA PARVEZ DRIVER & ANR.

Citation: 2024 LawText (BOM) (7) 23

Case Number: CIVIL REVISION APPLICATION NO.406 OF 2011

Advocate(s): Senior Advocate G. S. Godbole a/w. Adv. Pallavi Dabholkar for applicant in both CRA. Adv. Vaishali Benese a/w. Adv. Kamalakar Koli for respondent nos.1 & 2 in CRA/406/2011 & for respondent nos.3 & 4 in CRA/875/2011.

Date of Decision: 2024-07-02